Peer coaching has become a recognized tool for career learning in response to the demands of the contemporary business environment. Researchers and practitioners alike have defined it as a dyadic relationship with the potential to foster significant learning for one or both parties. However, the potential of peer coaching to facilitate personal and professional development may be undermined if critical risk factors are not understood and addressed. Exploring the risk factors associated with peer coaching is the explicit focus of this conceptual article. We adopt an ecological lens to deepen understanding of the process of peer coaching, and to show how the interdependence among elements at different levels of analysis influences this relational exchange. This multilevel perspective highlights the dynamic nature of influences which differ in visibility, severity, and levels of the social fabric. We also draw on relational theory in careers, research on interpersonal relationships, and dysfunctional mentoring to predict ways in which effective peer coaching can be undermined. Finally, we propose intervention strategies for minimizing risk factors associated with peer coaching, and an agenda for future research.